Credit Spending Fuels Brazil Growth
11 de maio de 2011Mudança no Tratado de Itaipu foi um péssimo negócio para o país, avalia instituto
13 de maio de 2011Brazil’s President Dilma Rousseff Wednesday said guaranteeing expansion of the investment rate would be key to maintaining sustained growth and lower inflation in the country’s economy.
Speaking at the launch of a government working group on competitiveness and management, Rousseff said the government would maintain efforts to control the budget and inflation, but noted that stimulating investment would remain a foundation of the government’s policies.
“For inflation to be effectively controlled in the medium and long term we need to guarantee that our country grows,” she said. “As such, macroeconomic policy will always privilege growth and the expansion of the investment rate.”
Brazil’s 12-month inflation rate in April broke the 6.5% upper band of the country’s inflation-target range, despite recent efforts by the country’s central bank to raise interest rates and restrict local credit supply.
According to recent market forecasts, Brazil’s economic growth rate is seen slowing to around 4% this year after topping 7.5% in 2010.
Brazil’s investment rate is seen rising to about 22% of gross domestic product in the coming years from 19% of GDP in 2010 due to ongoing outlays for local infrastructure. However, according to some analysts, investment may still fall short of a rate of near 23% of GDP needed to maintain sustained economic growth.
